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Secured Transactions
University of Kansas School of Law
Ware, Stephen J.

ATTTACHMENT
        §9-201     General Effectiveness of SA
        §9-203     Attachment of SI; Proceeds
        §9-204     After Acquired Property
RIGHTS
        §9-207     Rights & Duties of SP having Possession
PERFECTION
        §9-301     Law Governing Priority of SI
        §9-202     Law Governing Priority of SI in COT
        §9-304     “              “              “      Deposit Acct
        §9-307     Location of D 
        §9-309     SI perfected upon Attachment
        §9-310     When Filing Req. to Perfect SI
        §9-311     When Filing Req. to Perfect SI in COT
        §9-312     Perfection of SI in Dep. Accts, Money
        §9-313     Perfection by Possession
        §9-314     Perfection by Control
        §9-316     Perfecting SI following Change in Jrd
PRIORITY
        §9-317     Interest that take Priority over SI
        §9-320     Buyer of Goods (ordinary course of business)
        §9-322     Priority Among Conflicting SI
        §9-323     Future Advances
        §9-324     Priority of PMSI
        §9-332     Transfer of Money from Dep. Acct
        §9-334     Priority SI in Fixtures
        §9-335     Accessions
        §9-335     Commingled Goods
        §9-337     Priority of SI in COT Goods
RIGHTS OF 3rd PARTIES
        §9-401     Alienability of D’s Right
FILING
        §9-501     Filing Office
        §9-502     Contents of FS
        §9-503     Name of D and SP
        §9-504     Indication of Collateral
        §9-506     Effect of Errors
        §9-507     Change of Name – duty of SP
        §9-515     Duration of Effectiveness of FS
DUTIES OF FILING OFFICE
        §9-520     Accepting & Refusal to Accept FS
DEFAULT – ENFORCEMENT OF SI
        §9-601     Rights after Default
        §9-602     Waiver of Rights
        §9-607     collection and Enforcement by SP
        §9-609     SP right to “Self-Help”
        §9-610     Disposition of Collateral after Default
        §9-611     Notification Before Disposition
        §9-612     Timeliness of Notice
        §9-613     Contents of Notice
        §9-615     Where Proceeds Go after Disposition
        §9-620     SP Keeping Collateral
        §9-623     Right to Redeem Collateral
        §9-624     Waiver
        §9-625     D’s Remedies fo SP Failure to Comply
        §9-626     Deficiency and Surplus from Disposition
        §9-627     “Commercially Reasonable”
 
       
 
 
 
 
 
GOODS
        Definition:                               §9-102(a)(44)
        PMSI                                      §9-103
        Jrd Determining Perfection     §9-301(3)
        Perfection w/ Filing         §9-310
        Perfection by Possession        §9-313
        Commingled Proceeds             §9-615(b)(1)
        Future Advances                     §9-323
        Priority of PMSI                    §9-324
        SI in Commingled Goods        §9-336
CONSUMER GOODS
After-Acquired Property        §9-204(b)(1)
Possession                              §9-207(b)(4)(C)
Perfection by PMSI                §9-309(1)
Rights of Buyer                      §9-320
Priority of Fixtures         §9-334(e)(2)(C)
Mandatory Disposition          §9-620(e)
Remedies for D                       §9-625(c)(2)
EQUIPMENT
        Priority of SI in Fixtures §9-334(e)(2)(B)
        Rendering Equip Unusable     §9-609(a)(2)
FARM PRODUCTS
        Law Governing Perfection      §9-302
        Priority of PMSI                    §9-324(d)
INVENTORY
        PMSI in Inventory         §9-103(b)(2)
        Consignor’s PMSI                  §9-103(d)
        Does’n apply to:                    §9-311(d)
        Priority of PMSI                    §9-324(b)
ACCESSIONS
        SI in Accessions                  §9-335
CERTIFICATE OF TITLE GOODS
        Which Law Governs                       §9-303
        Perfection of SI in COT                  §9-311(a)(2)
        Possession to Perfect                      §9-313(b)
        Change in Governing Law               §9-316
        Priority of COT Goods                  §9-337
FIXTURES
        Priority                                           §9-334
        Filing Fixture Filing                      §9-501(a)(1)(B)
        FS Requirements                          §9-502(b)
        Duration Mtg Filing                     §9-515(g)
ACCOUNTS
        Rights of Buyers                          §9-207(d)
        Attachment                                   §9-309(2)
        Priority of Proceeds                     §9-322(c)(2)(C)
        No Surplus or Deficiency           §9-608(b)
CHATTEL PAPER
        Definition
        Rights of Buyers                          §9-207(d)
DEPOSIT ACCOUNTS
        Definition
        Control                                           §9-104
        Enforceability of SI                      §9-203(b)(3)(D)
        Duties of Controlling Party        §208(b)
        Law Governing                             §9-304
        Filing not Necessary                   §9-310(b)(8)
        Perfection of SI                             §9-312
        Perfection by control                   §9-314(a)-(b)
        Priority in proceeds                     §9-322(d)
        Priority in Acct                             §9-327
        Bank’s Rights & Duties              §9-341
I. SECURED CREDITORS
*      Remember Peerless Packaging Co. – if you have the opportunity to get a SI in collateral and chose not to, you are out of luck. Unjust enrichment argument against the secured creditor is not going to work. They did what they should have, you didn’t.
I. CREATION OF A SECURITY INTEREST
§9-203 Attachment & Enforceability of Security Interest
A SI attaches to collateral when it becomes enforceable against the D. Enforceable against the D when:
(1)  Value of Collateral Given, and
(2)  Debtor Has Rights In Collateral; and
        3(A)        D has an authenticated SA that provides a description of the collateral; or
                                                                                3(B) The collateral is not a certificated security and is in the possession of the secured party under §9-313; or
                                                                                3(C) The collateral is a certificated security in registered for and the security certificate has been delivered to the secured party under §8-301; or
                                                                                3(D)        The collateral is, electronic chattel paper, investment property, letter-of-credit rights, or electronic deposit accounts documents, and the secured party has control pursuant to the D’s security agreement.
 
                                                                               
 
 
 
 
 
 
 
 
 
 
 
                                       
 
        A.    DESCRIPTION OF COLLATERAL:
                i.      Sufficient Description: §9-108 – a description of personal or real property is sufficient if it reasonably identifies what is covered. Examples of reasonable descriptions of collateral are specific listing, category, quantity, or any other method if the identity of the collateral is objectively determinable. 
                        a.     Accounts: §9-102(a)(2) – a right to pymt of a monetary obligation, whether or not earned by performance. DOES NOT INCLUDE ACCTS RECEIVABLE
                        b.     Equipment: §9-102(a)(33) – gods other than inventory, farm products, or consumer goods
                        c.     Consumer goods: §9-102(a)(23) – goods that are used or bought for use primarily for personal,

     iii.    Commingling / Identifiable Proceeds:
                                                                •       §9-315(b) – if the proceeds are goods and if not goods, to the extent that the secured party identifies the proceeds by a method of tracing, including application of equitable principles.
                                                                        (a)   Tracing: comment 3 – among the “equitable principles” whose use other law may permit is the “lowest intermediate balance rule.”
                                                                        (b)   Proceeds Emerging from Bank Acct: §9-332(b) – a transferee of funds from a deposit acct takes the funds free of a security interest in the deposit act unless the transferee acts in collusion w/ the D in violating the rights of the secured party
                                                                        (c)  Product: §9-102(a)(64) – is something that arises out of collateral. something that collateral produces (i.e. sheep produce wool, milk is the product of cows, maple syrup the product of trees)
                                                                        (d)  Commingling of Collateral:
                                                                                I.      Identity Lost: §9-336(c) – SI may attach to a product or mass that results when goods become commingled. To attain such SI in mass, must be perfect prior to commingling. If more than one perfected SI in mass, the SI rank equally in proportion to value of the collateral at the time it became commingled goods.
                                                                                II.    Identity Remains: §9-335 – SI perfected when collateral becomes an accession remains perfected in the collateral. SI can be seriously impaired by what type or property it was added to and having to reimburse the creditor pertaining to the collateral as a whole.
 
    E.     AFTER ACQUIRED PROPERTY:
            i.        Generally: §9-204 – A SA may create or provide for a SI in after-acquired collateral
                      a.       Exception: §9-204(b) – can’t get SI in after-acquired property if:
                                (1) consumer good, (unless purchased w/i 10 days after secured party gives value)             
                                (2) or commercial tort claims.
                      b.       Consumer goods: §9-102(a)(23) – goods that are used or bought for use primarily for personal, family, or household purposes.
                                •   Other than an accession when given as additional security, unless the D acquires rights in them w/i 10 days after the secured party gives value,
                ii.  Case Law: typically applies to inventory or items that there is a large amount of turn-over (i.e. if you took a SI in it at beginning of month, you wouldn’t have SI in anything at the end of month).   So, w/o an explicit after-acquired property clause, the courts will not grant unless it is of that type of collateral